Leases

6 Months Ended

Jun. 30, 2021

Leases

Leases

8. Leases

The Company has both finance and operating leases for ground, building, office, equipment and airspace leases, maturing in dates ranging from 2025 through 2097, including expected renewal options. Including all renewal options available to the Company, the lease maturity date extends to 2147.

Leases were included on the Company’s consolidated balance sheets as follows (in thousands):

	June 30,			December 31,
	2021			2020
	(unaudited)
Finance Lease:
Right-of-use asset, gross (buildings and improvements)	$	58,799		$	58,799
Accumulated amortization		(13,352)			(12,617)
Right-of-use asset, net	$	45,447		$	46,182
Accounts payable and accrued expenses	$	2		$	1
Lease obligation, less current portion		15,568			15,569
Total lease obligation	$	15,570		$	15,570
Remaining lease term		77 years
Discount rate		9.0	%
Operating Leases:
Right-of-use assets, net	$	24,939		$	26,093
Accounts payable and accrued expenses	$	5,344		$	5,028
Lease obligations, less current portion		27,816			29,954
Total lease obligations	$	33,160		$	34,982
Weighted average remaining lease term, including reasonably certain extension options (1)		6 years
Weighted average discount rate		5.1	%

(1) The weighted average remaining term including all available extension options is approximately 34 years.

The components of lease expense were as follows (unaudited and in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Finance lease cost:
Amortization of right-of-use asset	$	367	$	367	$	735	$	735
Interest on lease obligation		351		351		702		702
Operating lease cost		1,366		2,341		2,686		4,070
Variable lease cost (1)		13		(689)		13		24
Total lease cost	$	2,097	$	2,370	$	4,136	$	5,531

(1) Several of the Company’s hotels pay percentage rent, which is calculated on operating revenues above certain thresholds.